tv Bloomberg Markets Bloomberg June 27, 2016 10:00am-11:01am EDT
bloomberg television. ♪ mark: special coverage in the aftermath of the u.k. vote to leave the eu. we're going to take you live to , andminster, milan elsewhere in the half hour. a weekend of political turmoil left britain and a direction. not having a functioning government or in opposition. vonnie: after talks reverberating across the financial market, stocks are falling led by global banks. u.k. bonds surge. the british pound falling to its lowest level since 1985. injectingonsidering capital to some of its lenders as to post brexit
selloff. it could infuse as much as $47 billion. 90 minutes until the close of trade here in europe today, have a look at where equities are trading right now. what a day we are having. look at our function -- global macro movers go. you can see what is happening in the stocks: right here. witha look at the finish ireland down 8%. luxembourg down by 3.8% today. big moves in the currency market today as well. look at the second column. the norwegian krone at 2.5% lower against the dollar. sterling down by 3.5% today after falling 8% on friday, which was the biggest ever fall. just remember that before
friday, the biggest ever fall in sterling was black wednesday in 1992. we are almost at that fall today. the euro fell 3.2% against the dollar today. 1%.y, it is down a mere in the sovereign bond market, we are seeing yields fall in for free today. look at the spanish 30 year -- 22 basis points lower. we have yields falling in sweden, france, and belgium. credit risk is on the rise and the number of commodities are following today. have a look at what is happening to the 10 year yield across europe today. something very significant happened here in the u.k.. is the white line and this is the yield of the 10 year going back 12 months. the u.k. 10 year falling below 1% for the first time ever. that is increasing the bank of england cutting rates next month.
14 andeting is on july futures pricing at the 50% chart of a rate cut from the bank of england. the german 10 year we know is below zero. i thought of a look at spain and italy as well. a rough week as france is lower than the u.k. at .3%. not quite negative as of yet. the final chart i want to show you is what is happening to u.k. banks today. this is the today chart. this is the stoxx 600 banks index. look at the declines that we have seen in the european banking industry since brexit happened on thursday. the announcement of course was on friday. the index itself has fallen by 21%. european banks have lost a fifth of their value in two days. let's put it in perspective. it is more interesting just going up the chart.
were suspended earlier because the shares fell over 10%. they are trading now. italy is considering injecting fresh capital into the italian banking industry because of brexit, according to people familiar with the situation. it is all happening today 30 minutes into the trading day. julia standing by. how's it looking back? ? julie: it is looking poorly. it is the first 1% back to back declines for the s&p 500 going to early february. it is the biggest two-day decline for the dow. the declines steepening in this first 30 minutes of trading. the nasdaq is down by 1.5%. it has been accelerating ever since the opening bell.
take a look at what is moving and it's a very similar imap to friday. you can see it on the bloomberg utilities as it's going up. the defensive group doing a little bit better. consumer staples and telecom not down as much as the rest of the market. sense are looking for the in the market. declines led by financials just as we are seeing in europe with financial down 2.4%. materials, discretionary, and tech trading lower by at least 1%. declines over the last couple of days means we are going deeply into the red for your today year to date. remember that we were talking about me a status for the dow and s&p 500. steepestok at the declines by index points in the biggest drags on the s&p 500 today, you have a mix of banks and technology.
on the banking side, microsoft and apple. as you look at the repercussions from the u.k. vote, we have been looking at the exposure of u.s. companies to europe. within technology, there is quite a bit. apple has 22% of its revenue from europe. many of these companies do not break out of u.k. specifically . hp and ibm each had about a third of their revenue from europe. finally the biggest percentage decline today has many of the same names that we were talking about on friday. the selling and traders do not feel like it is priced and as we see invesco once again plunging. swab and ual among the airlines falling. makers seeing steep declines today. vonnie: julie, thank you so much. breaking news with the supreme
court having the final day of opinions. the texas case was struck down. limits on abortion providers have been struck down by the supreme court. in other words, the law that would have seen abortion providers being reduced from about 20 to 10 has been struck down. backing gun curbs in domestic violence cases. the texas abortion case was more important. let's check in on the bloomberg first word news. taylor rates has more. lastr: john kerry says week's vote says the relationship will not change between the u.s. and the u.k. he is stressing the importance of the eu. >> it is our way to try to make certain that we are charting out a path for the future that actually strengthens the eu and serves the interests and values that brought us together and keep us together, even now.
it's a political decision regarding one country's membership, but that does not alter the fundamental interests and the values that we are seeking in governance. it is: he says that important that "nobody loses their head." maybelline may come to the rescue of its struggling bank. the italian government may inject billions of dollars in capital to some of those banks. it sparked a selloff among italian lenders. they have been hurt by concerns over bad loans. a stunning admission from pope francis. he says that christians need to ok's an apology. amongo says gays are groups who deserve an apology like women and groups have been exploited. ,lobal news 20 for hours a day
i am taylor riggs. mark: leaders of britain's splintered government are trying to patch things together today. george osborne says article 50 should only be triggered when the u.k. has a clear view of what it wants. anna edwards interviewed the leader of the house of comments who just attended a cabinet meeting. >> we very clearly need to do what's in interest to the united kingdom. we have to get ready and make sure we have the right team in place. we will have to elect a new prime minister who takes the key decisions about when we trigger article 50. what will happen over the next few months is that there will be informed discussions between ourselves and other capitals. of course, there will be discussions on how things go ahead. the formal process will not start until we are ready. to francineet lacqua.
said weekend when many there was a vacuum at the top of the government, it seems that if the likes of jaws john osborne and david cameron have come out fighting. francine: they are trying to give a sense of unity, but i do not know if there's a sense of unity . everyone is pushing back including john osborne could he decided to give a speech since we have not heard from him since 7:00 london time. it will be up to the new prime minister to trigger article 50 . who is the new prime o minister? that is what the markets want to know. isknow that david cameron almost like a lame-duck president. we are hoping today is to at least have some kind of message from david cameron, who will be speaking right by me to the house of commons to parliament
to see what he thinks is legal, possible, and desirable. at the moment, it seems that they are all kicking the can down the road. i'm not just talking about eu nations, but the government says they need a leader in the process will start on wednesday with new nominations of who will become a tory party leader. it will be up to this new person in charge to then go and decide when they start negotiating. . we just heard about these informal discussions. this is not what they want. they do not want to start informal discussions. they want the u.k. to just get on with it. vonnie: bring us up-to-date on how many opposition members of parliament have resigned with the money in place already. francine: it will be interesting because today is the first time that we will see these new
people with a cabinet reach after summoning resignations. i think we were at 14 and counting on the labor side. you would think that because of the numbers that the leadership of labor were to be in question. jeremy corbyn says he will with the shadow cabinet saying he is not the right person to lead the party. there was something i was reading on twitter that actually explained it in very civil terms, which i also thought was quite funny. david cameron who has 80 people inside his party backed him to stay is leaving. the labor party leader, jeremy corbyn, who has resignations asking him to leave, is staying. it seems like the world is upside down. mark: we will see later, francine lacqua in les
westminster. vonnie: i want to get to george marist. he joins us from denver colorado. george, i want to ask you risk correctly priced at this point? george: i think it is. we have obviously seen a dramatic decline, especially in the most risky assets, whether it is european or u.k. financials hit very hard, but also cyclicals around the world, in europe, japan, and the united states. did not just seeing financials but industrials, transports, energy stocks. every thing has been hit and quite dramatically. it feels like the market does appropriately priced a lot of the weakness that's out there. does that mean it is the end? it is unclear, but it does feel like the market has been a couple of days quickly adjusted to the current events. vonnie: so what is your
conclusion? is this the end? are we seeing lows for yields and highs for bonds? george: that is a really tough question to answer because sentiment and momentum can persist for a wild. rates ineeing negative the vast majority of most bonds around the world. that is clearly indicative of a very troubled environment. can it get worse? if probably can. does that mean from six months from now that we will stay a negative rates? i think that's unlikely. given the uncertainty, it could certainly get weaker. some of the prices that we are seeing, certainly in financials and industrials, become appealing on a 12-24 month view. mark: where else do you see appeal? i'm looking at the stoxx 600 run out. some of the homebuilders have been not down 40% in the u.k.
is the u.k. a no go zone or do we start to bottom fish here in the car u.k. now? george: i think it is early to start bottom fishing in the u.k. you do not have political certainty. you have a prime minister resigning. you do not have that planned out. uru have the labo party in turmoil. we do not know what's going to happen with scotland and northern ireland. the uk's a very difficult place to commit capital on a go forward basis until things get ved in untilresol there is a determination of one article 50 gets invoked. it is really uncertain. a lot of the chaos that is happening is a consequence of the united kingdom is probably being overdone around the world. there are stocks in japan and china and united states that are getting hit dramatically on this u.k. chaos that certainly
provide some great opportunities. these are stocks that are going to be resilient and going to be able to grow a respectable what is happening in the u k and greater europe. mark: can you give us an idea of the sort of stocks we should be looking at? george: absolutely. for example, in japan, sony corporation, which has been hit dramatically as a consequence of the strengthening of the yen, as a tremendous opportunity. first of all, sony is a beneficiary of a stronger yen because most of its operations are outside of japan and it generates non-yen earnings. it is actually a beneficiary and it's also in areas such as gaming that are growing tremendously and it will have very little impact from a decline in european and united kingdom activity. another one would be the chinese internet space like all the ball
alibaba. they will be growing dramatically a of what happens in the u k and greater europe. they have sold off pretty hard. those are much more attractive places to deploy capital. mark: great to hear your thoughts post brexit. coming up, much more "bloomberg markets." the global market movers and what is happening with italian banks today. ♪
he announced his resignation following the brexit vote on friday. he has held a cabinet meeting this morning. that aesman has told us policy unit will be set up, including treasury, various officials that will set the brexit process in motion. we also note today that the leadership contest will begin this week. nominations will be submitted on wednesday, closed on thursday, and we will have a leader of the tory party by september 2. after a weekend where you have to say there was a political vacuum, finally we are getting some movement at the top echelons of power. vonnie: also looking at crating a ministry finally to do with brexit issues in the future. it seems a little late, but there we go. cameron also addressing the parliament as he addressed the public. julie hyman has been watching
the markets and she is starting in europe for us. julie: i'm starting to the worst performers and s&p stoxx 600 -- or the euro stoxx 600 i should say. falling the most in 12 years in a single session. the u.k. airline gets about half of its revenue from the united kingdom directly and the rest of it from other countries in europe. definitely exposed here in the wake of the u.k. vote. persimmon and barratt developments, but u.k. real estate developer companies, are also catching a lot of selling in today's session. there are a couple of deals we are mentioning today. agreed to buy hardware and international. we are talking about a 93% premium here. though shares rise today as the company makes miniaturized assist devices. it is adding to its suite of
various medical devices. med tronic estimates that the market is about $800 million. --liams and energy transfer it finally looks like that deal is going to die in the wake of the judge ruling on friday that williams cannot force energy transfer to -- i should say energy transfer cannot force williams to close on the deal. they have been fighting on closing the deal, try to find a potential layout. it was agreed upon in september. we have seen prices plunge and a deal has been in doubt. williams trading lower and energy transfer trading higher. vonnie: we will be back in a short while and there is more "bloomberg markets" ahead. ♪
billion u.s. dollars to help struggling banks. the brexit vote sparking a selloff among italian lenders who have already been hurt by concerns over bad loans. joining us now is allies a martin ieliza. to stem thegh crisis of confidence going on inside the banks? >> it depends on the details of what is being discussed at the moment. we are hearing that discussions very from providing guarantees to providing capital injections. , that aregure definitely concerns. what we have seen a sharp deterioration in the share prices of italian banks burdened by a mountain of bad debt that they cannot seem to shake off. at the same time, they face a profit squeeze from interest rates. there does not seem to be a way out of this vicious circle. mark: does this tell us that the
fund that was set up was a failure? elisa: if you look back over the six months, i would say yes. you have gone from discussions with the eu over a bad bank that the saturation of the fund, which basically got soaked up quickly because to banks immediately needed it to ensure they could stay in business. yes, it does seem like we're going to the next stage of the crisis. vonnie: elisa, thank you in milan. mark: we are expecting u.k. prime minister david cameron to speak to parliament. we're going to bring that speech live on bloomberg. ♪ you guy's be good. i'll see you later
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"bloomberg markets," i'm vonnie quinn. the similarmark: declines in europe. let's get to bloomberg first word news today. taylor riggs has the latest. taylor: breaking news on the supreme court that we have been court shut down the texas law that threatened to close down three quarters of abortion clinics. it came to a 5-3 vote. the justices backs of federal convictionsfirearm -- firearm possession for those convicted of directing violence. a spokesman for teflon low that will not be formal talks on brexit until london has filed formal notice that it is leaving. britain may not file the notice known as article 50 for several
months. many european lenders want to do it sooner. and voters surprised the pollsters in a second general election. the prime minister consolidated his position, is people's party has been unexpectedly lose seats in parliament, instead, he picked up more. broughtsuggest voters into the ploy of not to jeopardize the economic recovery. and turkey's president has a wall just for the downing of a russian military jet in november. he expressed his sympathy and deep condolences to the family of the pilot asked to be forgiven. the russians have responded to the incident by halting package s and banning agricultural imports. turkey and israel have ended six years of the blue attic estrangement. confirmedetanyahu that it is have been restored,
opening the way for israel to sell billions of dollars in natural gas to the turks. relations broke down after a deadly clash at sea between israel special forces and pro-palestinian activists from turkey. global news, 24 hours a day, powered by 2600 journalists in 120 countries. the peopleon: we get having their say. we should be proud of our parliamentary democracy, but it is right when we consider questions of this magnitude, we don't just leave it to politicians, but rather, listen directly to the people. and that is when members from across this house voted for referendum by margin of almost six to one. when i talk about this house, we welcome the new member. i would advise her to keep her mobile phone on, she may be in
the cabinet by the end of the day. [laughter] david cameron: and i thought i was having a bad day. [laughter] let me set out for the house with this vote means, the steps we're taking a medially destabilize the u.k. economy, the preparatory work for negotiations to leave the eu, our plans for filling -- .ully engaging the british people have voted to leave the european union. it was not the result that wanted, nor the outcome i believe is best for the country i love. but there can be no doubt about the results. i don't take back what i said about the risks, it is going to be difficult. we've already seen that there are going to be adjustments within our economy.
complex constitutional issues, and challenging you negotiations to undertake with europe. the cabinetr on agreed this morning that the decision must be accepted and the process of implementing the decision in the best possible way must now begin. mr. speaker,ime, we have a fundamental response ability to bring our country together. in the past few days, we've seen despicable graffiti list community center, we've seen verbal abuse hurled against individuals because they are members of ethnic minorities. let's remember, these people have come here and made a wonderful contribution. crimel not stand for hate or these kind of attacks, they must be stamped out. mr. speaker, we can reassure european citizens living here and brits living in european countries that there will be no immediate changes in their circumstances. neither will there be any initial change in the way our people can travel, in the way our goods can move, with the way our services can be sold.
the deal we negotiated at the european council in february will now be discarded, and a new negotiation to leave the eu will begin under a new prime minister. turning to our economy, it is clear that markets are volatile, there are some compass considering their investments, and we know this is going to be far from plain sailing. fromould take off and it's the fact that britain is ready to confront what the future holds for us, from a position of strength. as a result of our long-term plans, we have today one of the strongest major advanced economies in the world. played to face the challenges ahead. we have low stable inflation, the employment rate remains the highest it has ever been, the budget deficit is down from 11% of national income, forecast to be below 3% this year. the financial system is also substantially more resilient than it was six years ago. with capital requirements for the largest banks, now 10 times
higher than before the banking crisis. the markets may not have been expecting the referendum results, but as the chancellor set out this morning, the treasury, the bank of england, and other financial authorities have spent the last few months putting in place robust contingency plans. as the governor of the bank said on friday, the bank stress tests have shown the u.k. institutions have enough capital and liquidity reserves to withstand a scenario more severe than the country currently faces. the banks and made available to hundred $50 billion in additional funds to support banks and markets. in the coming days, the treasury, the bank of england, and the financial conduct authority will continue to be in close contact. they have contingency plans in maintain financial stability, and they will not hesitate to take further measures if required. turning to preparations for negotiating our exit from the eu , the cabinet met this morning and agreed the creation of a new eu unit in whitehall. this will bring together officials and policy expertise
and across the cabinet office, treasury, foreign office, and business department. clearly, this will be the most complex and most important task that the british civil service has undertaken in decades. so the new unit will sit at the heart of government, and be led and staffed by the best and brightest from across our civil service. it will report to the whole on delivering the outcome of the referendum, advising on traditional issues and exploring objectively options for future relationship with europe and the rest of the world from outside the eu. it will be responsible for ensuring the new prime minister has the best possible advice from the moment of arrival. mr. speaker, i know that colleagues on all sides of the house will want to contribute to how we prepare and execute the new negotiation to leave the eu. offer the chance to the duchess of lancaster will listen to all views and make sure they are fully put into visit exercise. he will be playing the part of the leadership election.
we must ensure that the interest of all parts of the united kingdom are protected in advance. as we prepare for a new negotiation with the european union, we will fully involve the scottish, welsh, northern ireland governments. gibraltar,o consult the overseas territories, and all regional centers of power, including the london assembly. i have spoken to the first masters of scotland and wales, as well as the first and deputy first minister in northern officials will be working intensely together over the coming weeks to bring the ministrations into the process for determining what needs to be done. all of the key decisions will have to wait for the arrival of the new prime minister, there is a lot of work that can be started now. for instance, the british and irish governments begin meeting this week to work through the challenges relating to the common border area. mr. speaker, tomorrow, will attend the european council. in the last few days, i've spoken to a number of european leaders.
we have discussed the need to prepare for the negotiations, and in particular, the fact that the british government will not be triggering article 50 at this stage. before we do that, we need to determine the kind of relationship we want with the eu. the israelis and the for the next prime minister and cabinet to decide. something for the next prime minister and cabinet to decide. i will make this clear again at the european council tomorrow. mr. speaker, this is our sovereign decision, and it will be for britain and britain alone and to take. tomorrow is also an opportunity to make this point. britain is leaving the european union, but we must not turn our backs on europe or the rest of the world. the nature of the relationship we secure with eu will be determined by the next government. but i think everyone is agreed that we all want the strongest possible economic links with our european neighbors, as well as with our close friends in north america, the commonwealth, and important partners like india and china. i'm also sure that whatever the
precise nature of our future relationship, we will want to continue with a great deal of our extensive security cooperation, and to do all we can to influence decisions that would affect the prosperity and safety of our people here at home. mr. speaker, this negotiation will require strong, determined, and committed leadership, and i think been country requires a new prime minister and cabinet to take it in this direction. this is not a decision i have taken lightly, but i'm convinced it is in the national interest. mr. speaker, although leaving the eu was not the path i recommended, i am the first to praise our global strength of the country. implement in with this decision and facing the challenges it will undoubtedly bring, i believe we should hold fast to a vision of britain that wants to be respected abroad, tolerant at home, engaged in the world, and working with international partners to advance the prosperity and security of our nation for generations to come. i've fought for these things everyday of my political life, i will continue to do so, and i
commend the statement in the house. and the leader of the opposition, jeremy corbyn, thank you. jeremy corbyn: firstly, i would like to thank the british people for turning out to vote in the referendum in such high numbers. the vote was a reflection of the significance of the issue. but it was a close vote come on the back of a campaign that was too often divisive and negative. --se benches for the lord put forward a positive case to remain part of the european union and convince more than two thirds of our own supporters. jeremy corbyn is now addressing the house of commons. corbyn: many people feel disenfranchised and powerless. especially in parts of the country that have been left behind for far too long.
communities, mr. speaker, that have been let down. not by the european union, but by tory government. those communities don't trust politicians to deliver, because for too long, they haven't. cuts toof more extreme liberal services, which it hit the area is the hardest, this government needs to invest in those communities. many of those areas are deeply ofcerned about the security pledged eu funding. can the prime minister give us any guarantees on those issues, as that money is desperately needed? trustly, is the issue of and the tenor in the referendum campaign was disheartening. half-truths and untruths were told. many of which key lead figures for the weekend distancing themselves from, not least the claim that the vote to leave
would hand the nhs another 350 million pounds per week. it was quite shameful that politicians made claims they knew to be false and promises a new could not be delivered. thirdly, real concern exists about immigration, but too much of the discussion in the referendum campaign was in temperate and divisive. in days following the referendum results, it appears that we have seen a rise in racist incidents, on a polishattack person, and many other such incidents all over this country. i hope the prime minister and home secretary will take all action they can to hold these attacks, hold this disgraceful, racist behavior on the streets of this country. as political leaders, we have a duty to calm our language in
town, especially as the shocking events of 10 days ago. our country is divided, and the country will thank neither the benches in front of me nor behind for indulging in internal sectioning maneuvering at this time. mr. speaker, we have -- mr. speaker, we have serious matters to discuss in this house, and in the country. accommodate as many as possible of those colleagues who was depression -- who wish to question the premise or, matters just slow up if people make a lot of noise. i have plenty of time. it does appear that either wing of the tory government as an
exit plan, which is why we are insisting that a labour party be fully engaged in the negotiation that lies ahead. to shape ourreedom economy for the future, and protect social and employment rights while building new policy on trade, on trade, migration, environmental protection, and on investment. i fully understand the prime minister standing down in three months time, but we cannot be in a state of paralysis until then. the prime minister is meeting the european council tomorrow, i hope he is going to say that the negotiations will begin, so we know what's going on, rather than being delayed until october. we, as the house, have a duty to act in the national interest, and ensure that we get the best agreement for our constituents. will the prime minister today confirm that in the light of the economic turmoil, the chancellor will announce at least a suspension of his now even more counterproductive fiscal rule?
what the economy needs now is a clear plan for investment, particularly in those communities that have been so damaged by this government and sends it to very strong message to all of us last week. will he specifically rule out tax rises were further cuts to public services that were threatened in the pre-referendum? i welcome his assurances on the uncertainty. with aeremy corbyn labour party after david cameron the prime minister addressed them. francine lacqua is at westminster. if you were the beginning of cameron's speech, he made a joke which certainly made everyone laugh, me included. labour membernew of parliament and advised she kept her phone on, because she could be a member of the shadow cabinet by the end of the day. he said i thought i was having a bad day. he has some sense of humor,
despite what has happened in recent days. francine: i thought it was a very strong speech, mark. , he deflecteds the fact that he resigned three days ago and put basically embarrassed jeremy corbyn because of his turmoil in the labour party. was a very strong speech and very targeted. i think it was very cleverly written. basically his main points, we want to find out three things. what is desirable, what is possible, and what is legal. there is no turning back. this seems to be very clear, in his mind it will be up to the new prime minister to invoke article 50. he says the british people have spoken, this is a matter of sovereignty. it's not the action that he would have wanted, but this is what will happen. i thought he was very strong at the end it, he said it's very important that we remember we are leaving the eu, but we do not want to turn our back on europe or the rest of the world.
fiscaled about adjustments on the political spectrum and also economically, and talked about challenging new negotiations. we felt a little more comforted because we heard such a strong incumbent for the moment. we know he will be here for at least another couple of months, or at least until we have a new prime minister, which will come from the tory side. inseemed like someone who is a strong position, talking about contingency plans. this is what a lot of the markets and the financial people that we have been speaking to were worried about. the fact that mark carney had it shipped -- a ship that was in order. it sounded like the government didn't think about the possibility that the breadth of vote would win. -- the brexit vote would win. david cameron saying this will be the task force that he will send out to talk to other members of the european union. i thought that was pretty
strong. i don't know if the markets reacted on the back of it, he didn't answer a lot of the questions. there is a sense that at least there was a plan, and he did try to unify the lyrical spectrum and unify the country. mark: little change in the power , it's down -- in the pound, the lois lerner since -- the lowest level since -- it was a black: the government. we now know that the leadership contest of the conservative party is underway tomorrow. it starts, they are waiting for names on wednesday. that name gathering will close on thursday. they hope to have someone in place by september, which would be a couple of weeks or one month before the conservative convention. overall, the tone of the prime minister was reminding this nation that they were one, and
that they will proceed with caution. mark: we're going to go back to david cameron. david cameron: when we acquired a new government -- mark: former chancellor kent's -- there'sists clog a lot going on in the u.s. westminster very shortly. some big things happening in the u.s., vonnie. vonnie: hillary clinton elizabeth wharton, who is one of the evil being touted as a potential vp pick for hillary are speaking at an event in cincinnati. elizabeth moran just introduced hillary clinton, saying things like donald trump is a nasty man who wants it all for himself. she would work hard to elect hillary clinton. you could watch the whole event on live go on the bloomberg. hillary clinton: more portly,
country, and if that means we have to have an independence referendum to protect scotland, then so be it. speaker, thatmr. we have a scottish government and a first minister to lead and seek to protect scotland's place, it is very, very welcome of this approach is being supported by opposition political parties across the scottish parliament. speaker, project fear has turned to project farce. those who propose to leave europe have no plans. there is no plan, believe campaign don't have a post brexit plan. they went on to say number 10 should have had a plan. arewhile, u.k. share prices so volatile that some stocks of temporarily been suspended and sterling has hit a 31 year low.
mr. speaker, on one thing, i hope we are all agreed. and that is that we take very serious note of the very disturbing series of racist incidents directed against our fellow citizens who have to come from other european countries. i hope that we all on all sides totally repudiate these despicable acts and encourage the police and prosecuting authorities to do all that they can. mr. speaker, given the economic damage and uncertainty that is currently being caused, may i ask the prime minister the --lowing financial questions we welcome the actions of the governor the bank of england to help provide certainty in difficult times. can the prime minister confirm that the governor has no plans presently to change his forward guidance on interest rates? the s&p will continue to four -- to support any reasonable
measures to support the u.k. economy at this time, but we want to be explicitly clear that this will not be used to further deepen the program of austerity. in conclusion, the lack of leadership from white fall over the past few days has been unprecedented. we recognize that any further vacuum exacerbates uncertainty. we know the plan minister is running -- planning to leave, but can we have an absolute assurance that his government will finally start to take a firm grip of the situation we all sadly find ourselves in? >> our focus should be to get the very best deal for the united kingdom outside the european union, and that should be the very best deal for scotland as well. i absolutely agree about the despicable acts of racism that have taken place, and reassure him as well and we will take every step that we can.
he asked specifically about interest rates, that is a matter of the bank of england and the monetary policy committee and they set out their views in advance of the referendum. he asked about budgets, that's going to be a matter for a future government. the limit say this to him, scotland benefits from being in these two single markets, united kingdom and the european civil market, and in my view, the best outcome is to try and keep scotland in both. >> sir william cash. sir william cash: thank you, mr. speaker. mary first of all pay tribute to the prime minister for the dignity with which he addressed the nation from 10 downing street yesterday. speaker, will my right honorable friend to take a positive in central message to the leaders of the other 27 member states of the european council tomorrow, namely that the voters of united kingdom have demonstrated a value of
that great principle, the principle of democracy for which people fought and died. david cameron: everything my honorable friend. i will report directly on the result in the decision of the british people, and no one should be in any doubt about that. i think it is important that we set off on this path of exiting of the european union with trying to build as much goodwill as possible on both sides. >> tim ferran. tribute to can i pay the prime minister on his right hand -- on his resignation. we have not always agreed, but his energetic commitment to the remain campaign contrasts favorably to tribalism of others. he has my respect and my thanks. respect the outcome of
the referendum. but i still feel passionately that britain's interests are best served at the heart of europe, in the european union. i can accept defeat, but it will not give up. i've not changed my belief. with the promises of the leave campaign unraveling, and no leadership being shown by the opposition, will the prime minister confirm that free movement of people and access to single markets are paramount economic stability of britain, and with the launch an investigation into the whereabouts of the members for auschwitz and surrey. -- oxbridge and surrey. david cameron: it's not up to me to ensure attendance in the chamber, i am a responsible is, but that is not one of them. thank you for what he said about my leadership, and i enjoyed a. a platform with him outside birmingham you, university. and gordon brown, a but
obviously unpersuasive trilogy. [laughter] david cameron: they gave fantastic speeches. i think he is right that the decision we're going to have to take, for the next government, about how we get the best possible access to the single market, i think that's going to be one of the single most important decisions of the government must take on. we must bear in mind the importance of safeguarding our economy, its trade links, it is jobs. that be very serious consideration. distress is read by those who voted remain on thursday is that they believe the country has turned its back on their values. does the primary this dust is the prime minister reassure that the tolerance that we supported within the european union will continue to be the hallmark of united kingdom as we seek a new role in the world? david cameron: i hope my honorable friend is right. that is wheit